On-Chain Data Shows Bitcoin Daily Transaction Volumes Are Up 94%, Rally Might Not Be Over Just Yet
August 03 2021 - 7:00PM
NEWSBTC
Bitcoin has recently lost momentum following the rally that
occurred over the past week. The digital asset had seen gains of
over 20% while the entire market followed suit and showed massive
gains all across the board. Bitcoin had spent 9 consecutive days
closing in the green for the first time in a decade. As the
cryptocurrency sees slowing momentum, the price has experienced
various dips that have driven the price down. After the asset had
jumped over $42,000 for the first time in over a month. With this
slowdown, it seems that the rally has come to its end. But on-chain
data shows that bitcoin is picking up steam in other areas. Related
Reading | Bitcoin Is More Oversold Than It Was At ATH In
April, Says Analyst On-chain data analysis shows that daily
transaction volumes of bitcoin have picked up in the past week.
Jumping up 94% to $9.1 billion per day from $4.7 billion per day.
Showing that while the price may have slowed down, the volumes have
not. Small Holders Accumulate Bitcoin Aggressively This report from
Glassnode shows that small-time bitcoin holders are accumulating
the digital asset even more aggressively than the whales. These
wallets which are referred to as the “Shrimp and Crab” wallets are
the wallets holding less than 10 BTC on their balance. For the
first time, small-time holders now collectively own 13.8% of the
entire bitcoin supply. Related Reading | On-Chain Expert
Predicts $162K Bitcoin Peak This Cycle The trends show that the
wallets have been accumulating coins since May, after the market
crash that saw assets losing up to 50% of their value in a short
period of time. Wallets holding less than 10 BTC have continuously
increased their holdings as the market has dipped and dived through
the months. Accumulation patterns continue to point towards
bullish, and so does coin maturation, but these bullish indicators
can often take time to develop in the market. Small investors
accumulating more coins show more faith in the market. As more and
more investors are now choosing to hold their coins instead of
selling them off. Price Movements So Far Bitcoin price continues to
struggle in the $38,000 range following the price dip at the
beginning of the week. Momentum continues to remain low in the
digital asset while it seems the rest of the market is trying to
dissociate from the pioneer cryptocurrency. BTC price continues to
trend low | Source: BTCUSD on TradingView.com The coin has so far
lost over $1,000 in a 24-hour period. Showing a 3.64% decline in
the coin price in the past day. Trading volumes have also declined
11% according to CoinMarketCap. As of the time of this writing,
bitcoin is currently trading at $38,358, as the market cap
continues to remain above $720 billion. Featured image from
Cointelegraph, chart from TradingView.com
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